GVK-BHP consortium wins 7 offshore oil blocks in NELP-VII show

01 July 2008

Mumbai: A consortium of GVK Oil and Gas Ltd, a subsidiary of GVK Power and Infrastructure Ltd and Australian mining giant BHP Billiton has emerged winners in seven deepwater exploration blocks off the west coast of India in the seventh round of bidding under the New Exploration Policy (NELP-VII).     

GVK Oil and Gas Limited is the lead partner in the consortium and "this marks GVK's foray into the oil and gas sector,'' said G V Krishna Reddy, chairman, GVK Power and Infrastructure Limited. GVK, however, has little experience in oil and gas exploration.

BHP Billiton has expertise in crude oil exploration, condensation, liquefied petroleum gases, natural gas and liquified natural gas and has major oil and gas assets in Algeria, Australia, Pakistan, Trinidad and Tobago, United Kingdom and the United States.    

Other bidders for deepwater blocks include ONGC,  Cairn, GSPC among others.

Indian deep waters have, however, witnessed a number of exploratory successes like the Reliance blocks in the Krishna Godavari basin in the east coast, in recent times.
 
The government received 181 bids for 45 blocks by the bid closing date of 30 June. A total of 96 companies, including 21 foreign companies and 75 Indian companies, have bid either on their own or as consortia. 

Forty-two new players have bid for the nine S-type blocks either on their own or in consortium.  Similarly, in the deep water blocks two super majors, including BP and BHP Billiton have bid in consortium with Indian companies, namely, RIL and GVK, respectively.